If you're thinking about becoming a restaurateur, then you should know that you're going to need insurance. There are simply too many risks associated with operating a business to avoid quality insurance coverage.

The question then becomes: How much does restaurant insurance cost? You'll want to know that ahead of time so that you can produce an accurate budget.

The answer to that question is the all-too-familiar: It depends.

What does it depend on? Here are a number of considerations.

1. The Physical Location Of The Restaurant

You're going to want property insurance, obviously. The cost of property insurance is dependent on where you restaurant is physically located.

Property insurance will cover damage caused by a storm. If your restaurant is located in an area where there are a lot of storms, you can expect to pay a higher premium than the owner of a restaurant located in northern Montana, where there aren't a lot of storms.

Also, if your business is in an area with a high crime rate, you can expect to see a higher premium as well. This is because property insurance also covers loss due to theft.

Finally, do you own or rent the building where your restaurant is located? If you're ensuring the real estate assets in addition to the equipment and furniture, then you can expect a higher premium than the owner of a restaurant in a rented location.

2. Liquor Sales

Does your restaurant serve liquor? If so, then you're going to need liquor liability insurance to cover your business in the event that someone consumes alcohol at your establishment, gets behind the wheel of a car, and causes an accident.

Obviously, that's an additional cost to you that's not going to be seen by owners of restaurants that don't serve alcohol.

3. The Number Of Employees

The number of people that you have working at your restaurant will affect your workers compensation premium. Basically, the more people that you have working there, the higher the premium because there are more people to cover and it's more likely that one of them will get hurt on the job.

4. Length Of Time In Business

How long you've been in business matters. If you're just opening a new restaurant, then you can expect to pay more in insurance rates than Gordon Ramsay or Bobby Flay. Those celebrity chefs have a proven track record of restaurant management.

There are a number of factors that affect your insurance premiums.

So, How Much Does It All Cost?

After considering all of the factors, it's best to estimate a range from $5,000 to $7,500 for your insurance premiums.

Remember, though, that is just a ballpark range. The best thing for you to do is to talk to a qualified broker about your plans for a restaurant and let the broker give you more detailed information about the various types of insurance that you'll need and how much they cost.

Remember also to ask your broker about a business owner's policy. That's a combination of insurance offerings in one package with the added benefit of a discount.

Owning and operating a restaurant is certainly an exciting and challenging opportunity. Make sure that your business is properly covered with quality insurance. Also, make sure you've budgeted for that insurance.